Crest Animation Studios Ltd

I had spoken with the sources in Crest Animation Studios Ltd and discussed with them the condition of the company post declaration of the results. The sources said, that the company is doing fine and  they have lot of projects in hand. The company is continuously executing projects and the revenues are flowing. This is apparent from the higher turnover of the company in Q3FY13, at Rs.7.17 Cr as against Rs.6.09 Cr in Q3FY12 and Rs.6.83 Cr in Q2FY13. Thus there is an improvement in the company's revenues, which will further strengthen going forwards, according to my close sources. Moreover, the sources pointed out that the company (Crest Animation Studios Ltd) before interest payment of Rs.1.44 Cr (which is coming down progressively, both on sequential and on Y-o-Y basis), has actually come up with a net profit of Rs.10.31 lakhs. They further pointed out that the company would have improved on its net profit had not there been a loss of Rs.1.95 Cr. Now without this loss the profits would have been around Rs.2 Cr which is much higher than what we got in Q3FY12 (Rs.1.38 Cr). This is expected come down, as the company is talking with various lenders for alternate arrangement of funds, to meet its working capital needs. Therefore, I find that there is no justification for Panic,  for the shareholders of Crest Animation Studios Ltd. One should accumulate the shares of Crest Animation Studios Ltd, when the distress selling is being done.CLICK HERE. CMP: Rs.10.51.